Online lending platform Jaja Finance Ltd reveals that a consortium of investors, who are led by shareholder KKR and including entities owned by investment funds being managed by TDR Capital LLP, have entered an agreement with Jaja to become majority shareholders of the business.
This deal will reportedly support Jaja in its goal to become the online consumer lender of choice in the United Kingdom. Jaja has been advised in relation to the deal by Jefferies.
The financial terms of the transaction, which is currently subject to regulatory clearance and approvals, have not been shared publicly. Original investors, such as IAG Silverstripe, will maintain considerable holdings, the update confirmed.
Jaja was established to offer all-digital credit solutions with a special focus on simplicity and quality service. The additional investment should support Jaja so that it can keep investing in its consumer credit product offering as it gets ready to introduce its Jaja-branded credit card in the United Kingdom, and to further develop its range of products.
The Jaja team will grow considerably with a sharp focus on product and data science, software development, engineering and IT operations, so that they can position the firm to offer a comolete suite of products and services.
David Chan, CEO of Jaja Finance, stated:
“We are pleased to reach this agreement with KKR and TDR which validates the confidence we all have in our platform and our people. With the backing of the new majority shareholders, we are looking forward to our next phase of growth with our credit card launch, as well as the development of credit propositions for our customers, fuelled by our agile technology and machine learning analytics capability.”
Vaibhav Piplapure, MD at KKR, remarked:
“As existing shareholders in Jaja, we have been impressed with its development and look forward to backing its transformation and growth along with our new strategic partners.”
Chris Jones, Partner at IAG Silverstripe, added:
“As a supporter of the business since its inception, we are delighted with this transaction. KKR and its strategic partners bring a great track-record of developing and growing businesses. This, along with the excellent team and platform at Jaja, will propel the business to the next level and beyond.”
Credit funds and accounts that are being managed by KKR had first invested in Jaja in 2019 along with an acquisition of a UK-based credit card portfolio and have continued to invest in the business since that time.
Existing investors reportedly include the Future Fund, the UK government scheme for supporting high-potential businesses during the COVID-19 crisis.